Asian Markets Fall over Mounting Trade War Concerns

Asian traders switched off risk sentiment and switched on risk aversion as the Asian equity markets fell lower. Traders are worried over escalating trade tensions between China and the United States as well as Brexit. The U.K. Parliament cannot seem to find common ground on an exit strategy from the European Union.

The Nikkei 225, in Japan, was down over 0.6 percent by the afternoon. Shares of index heavyweight Softbank fell lower after news that the U.S. Justice Department has recommended to block a deal between T-Mobile and Sprint. Softbank shares fell over five percent. The broader Topix index, in Tokyo, was down 0.44 percent.

In South Korea, the benchmark Asian bourse, the Kospi composite index lost a fraction of a percent and in The Down Under, the S&P ASX 200 was down 0.22 percent.

In China, the mainland exchanges were lower by the afternoon. The Shanghai composite lost 0.84 percent and the smaller Shenzhen composite lost 1.47 percent. The Shenzhen component was down 1.67 percent.

In Hong Kong, the Hang Seng index lost 1.3 percent.

Asian Traders Worry over Mounting Trade War Tensions and Brexit

There are headlines that the United States will slap sanctions on Chinese technology company Hikvision. This is increasing trader worries about their ongoing trade war. These tensions are weighing on market wide sentiment as Asian stocks also fell today. Sentiment was briefly better after the U.S. moved to temporary ease sanctions against China’s Huawei Technology for 90 days. This is giving other telecom providers a chance to find an alternative solution.

The Brexit saga is also hurting sentiment. There is increasing pressure on U.K. British Prime Minister Theresa May to resign. This comes after her new Brexit deal, or attempt to find a consensus, backfired. A key ally of May has also resigned from her cabinet.